Technical analysis of USD/CHF for May 18, 2017

Overview:

• The USD/CHF pair continues to move downwards from the level of 0.9893.
• Today, the first resistance level is seen at 0.9893 followed by 0.9948 as second resistance.
• Also, the level of 0.9787 represents a weekly pivot point for that it will act as major resistance/support in coming hours.
• Amid the previous events, the pair is still in a downtrend, because it is trading in a bearish trend from the new resistance line of 0.9893 towards the first support level at 0.9787 in order to test it.
• If the pair succeeds to pass through the level of 0.9787, the market will indicate a bearish opportunity below the levels of 0.9710 and 0.9655.
• However, if a breakout happens at the resistance level of 0.9893 (resistance 1), then this scenario may be invalidated.
• Additionally, the support is found at 0.9893, which represents the 50% Fibonacci retracement level on the daily time frame. Since the trend is below the 50% Fibonacci level, the market is still in an downtrend.

The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com